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TMI Blog2015 (1) TMI 1245X X X X Extracts X X X X X X X X Extracts X X X X ..... has only filed the bills in support of the tickets purchased for foreign travelling. In these facts, we see no reason to interfere with the order of the CIT(A) - Decided against assessee Disallowance towards interest paid to ABN Ambro Bank Ltd - Held that:- No evidence in support of the claim of the assessee could be filed by the assessee before us.- Decided against assessee Disallowance of garden expenses - Held that:- We find that the garden expenses were incurred by the assessee for the business purpose and copies of bills were also produced before the AO and the CIT(A), and therefore, there is no case for disallowance of 20% of the total garden expenses claimed by the assessee. - Decided against revenue Disallowance of consu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)(c) - certain disallowances - Held that:- As all the material facts necessary for the assessment of the case of the assessee were filed along with return of income. The assessee has filed explanation in this regard, which seems to be bona fide. It seems that this is a case of honest difference of opinion between the assessee and the Revenue with regard to allowability of certain expenses claimed by the assessee. Merely because certain expenses were capitalized and/or certain disallowances were made, it cannot be said that the assessee is guilty of concealment of income or filing of inaccurate particulars of income. The CIT(A) has deleted the penalty by following the decision in the case of CIT Vs. Reliance Petroproducts Pvt. Ltd., (2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing the same as revenue expenditure could be made before us, and accordingly, the ground no.1 of the assessee is dismissed. 4. The ground no.2 of the assessee is as under: 2. On the facts and in the circumstances of the case the ld.CIT(A) added erred in disallowing 50% traveling expenses ₹ 331474 out of total traveling expenses of ₹ 662948/- 5. The learned counsel for the assessee submitted that there was no basis for disallowing 50% of travelling expenses out of total traveling expenses of ₹ 6,62,948/-. The learned DR has relied on the orders of the AO and the CIT(A). We have considered rival submissions and perused the orders of the AO and the CIT(A). We find that the disallowance was made out of foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere filed. The learned DR relied on the orders of the AO and the CIT(A). We have considered rival submissions. We find that the garden expenses were incurred by the assessee for the business purpose and copies of bills were also produced before the AO and the CIT(A), and therefore, there is no case for disallowance of 20% of the total garden expenses claimed by the assessee. Accordingly, the disallowance of ₹ 51,216/- is deleted, and the ground no.4 of the assessee is allowed. 10. The ground no.5 of the assessee is as under: 5. On the facts and in the circumstances of the case, the ld.CIT(A) ought to have allowed consultancy charges to the tune of ₹ 2,92,815/-, and therefore, has erred in confirming the action of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trading account by the assessee, and therefore, the addition of ₹ 26 lakhs was made on estimation of profit was justified. The learned counsel for the assessee submitted that the assessee could not compete with the foreign manufacturers of the textile machinery and spare parts, and therefore, there was sharp decline of sales of ₹ 50.57 lakhs during the year as against last year s sales of ₹ 1023.40 lakhs, and the assessee has declared loss in the current year as against GP rate of 9.05% in the last year. He submitted that due to continuous loss, the assessee has to close down its business, and could not revive the same till the date. He submitted no defect of the accounts of the assessee could be pointed out by the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure, foreign travelling expenses, interest u/s.36(i)(iii) and professional fees, respectively. 18. The learned DR relied on the order of the AO. She referred to the relevant portions of the penalty order and assessment order in support of the case of the Revenue. The learned counsel for the assessee submitted that the penalty was levied on the amount of certain disallowances made by treating the expenditure as capital expenditure, out of foreign travelling expenses, interest under section 36(i)(iii) and professional fees. He submitted that all the material facts were disclosed by the assessee in the computation of income. 19. We have considered rival submissions and perused the orders of the AO and the CIT(A). We find that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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